- Total Revenues of $5.0 Million; Recurring
Revenue of $3.3 Million Rises 32% Year-Over-Year -
- Three Systems Sold in the Third Quarter,
Including Two in Major Academic Centers in the New York City
Metropolitan Market -
- Received Purchase Orders for Two Renaissance
Systems to Date in the Fourth Quarter; Reaffirms Expectation for
Stronger Second Half Compared to First Half -
- Conference Call Today at 8:30 AM ET (3:30pm
IST) -
Mazor Robotics Ltd. (TASE:MZOR) (NASDAQGM:MZOR), a developer of
innovative guidance systems and complementary products, reported
revenue of $5.0 million for the third quarter ended September 30,
2015 compared to $6.1 million in the year-ago third quarter. As
previously reported on October 6, 2015, during the third quarter
the Company sold three Renaissance systems, including the first
systems installed in the New York City metropolitan market.
“The strategic importance of the two Renaissance system sales in
the New York City metropolitan market is significant to our
opportunities for growth,” commented Ori Hadomi, Mazor's Chief
Executive Officer. “These are leading academic institutions and
their utilization of the systems will help us build greater
awareness in the NYC area and in other large metropolitan areas we
are seeking to penetrate. As we approach an installed base of 100
systems worldwide and the 13,000th procedure performed with a Mazor
system, we introduced at last month’s NASS annual meeting our new
PRO solutions line to enhance the surgeon’s experience and evolving
needs. The PRO line of solutions expands our capabilities,
showcases our innovative heritage and furthers the partnership
between Mazor and our customers. I was encouraged with the interest
level in the PRO solutions line and we anticipate launching more
PRO solutions throughout 2016.”
“We entered the fourth quarter with a robust pipeline and we
have received orders for two systems in the quarter to date. We
continue to have ongoing discussions with hospital administrators,
the pipeline remains solid and we are reaffirming our confidence
that Mazor will sell more Renaissance systems in the second half
compared to the first half of 2015,” concluded Mr. Hadomi.
THIRD QUARTER 2015 FINANCIAL RESULTS ON IFRS BASIS
(“GAAP”)
Revenue for the three months ended September 30, 2015 decreased
18% to $5.0 million compared to $6.1 million in the year-ago third
quarter. U.S. generated revenue decreased to $4.3 million compared
to $5.4 million in the year-ago third quarter, as the Company sold
three Renaissance systems in the U.S. market during the third
quarter of 2015 compared to five systems sold in the 2014 third
quarter. International revenue remained the same at $0.7 million
compared to the third quarter of 2014. Recurring revenue from
system kit sales, services and other increased to $3.3 million in
the third quarter of 2015, representing a 32% increase compared to
$2.5 million in the third quarter of 2014, mainly attributed to
increased utilization of the Renaissance system.
The Company’s gross margin for three months ended September 30,
2015 was 75.9% compared to 80.6% in the year-ago third quarter,
reflecting the lower number of systems sold during the 2015 third
quarter.
Total operating expenses were $8.9 million compared to $8.4
million in the third quarter of 2014, primarily reflecting the
Company’s increased investments in sales, marketing and R&D
activities. Operating loss was $5.1 million compared to an
operating loss of $3.5 million in the year-ago third quarter. Net
loss for the third quarter of 2015 was $5.2 million, or $0.12 per
share, compared to a net loss of $3.9 million, or $0.09 per share,
in the third quarter of 2014.
Cash used in operating activities was $2.6 million compared to
$4.0 million used in last year’s third quarter. As of September 30,
2015, cash, cash equivalents and investments totaled $45.0
million.
THIRD QUARTER 2015 FINANCIAL RESULTS ON NON-GAAP
BASIS
The tables below include reconciliation of the Company’s GAAP
results to non-GAAP results. The reconciliation relates to non-cash
expense in the amount of $1.0 million with respect to share-based
payments recorded in the third quarter of 2015. On a non-GAAP
basis, the net loss in the third quarter of 2015 was $4.2 million,
or $0.10 per share, compared to $3.2 million, or $0.08 per share,
in the third quarter of 2014.
NINE MONTHS ENDED SEPTEMBER 30, 2015 FINANCIAL RESULTS ON
IFRS BASIS (“GAAP”)
For the nine months ended September 30, 2015, revenue increased
12% and totaled $17.3 million compared to $15.5 million for the
nine months ended September 30, 2014, due to an increase in
recurring revenues. Recurring revenue totaled $9.2 million compared
to $6.6 million in the nine months ended September 30, 2014. The
growth in recurring revenue is attributed to the increased
utilization of the Company’s Renaissance system, both in the U.S.
and globally. Gross margin for the nine months ended September 30,
2015 was 77.5% compared to 79.6% in the nine months ended September
30, 2014. Net loss for the nine months ended September 30, 2015 was
$12.5 million compared to $11.6 million in the nine months ended
September 30, 2014.
NINE MONTHS ENDED SEPTEMBER 30, 2015 FINANCIAL RESULTS ON
NON-GAAP BASIS
On a non-GAAP basis, the net loss for the nine months ended
September 30, 2015 was $10.2 million, or $0.24 per share, compared
to a net loss of $10.1 million, or $0.24 per share, in the nine
months ended September 30, 2014.
CONFERENCE CALL INFORMATION
The Company will host a conference call to discuss these results
on Thursday, November 5, 2015, at 8:30 AM EST (3:30 PM IST).
Investors within the United States interested in participating are
invited to call 877-269-7756. Participants in Israel can use the
toll free dial-in number 809 406 247. All other international
participants can use the dial-in number 201-689-7817.
A replay of the event will be available for two weeks following
the conclusion of the call. To access the replay, callers in the
United States can call 877-660-6853 and reference the Replay Access
Code: 13614094. All international callers can dial 201-612-7415,
using the same Replay Access Code. To access the webcast, please
visit www.mazorrobotics.com and select ‘Investor
Relations.’
Use of Non-GAAP Measures
In addition to disclosing financial results calculated in
accordance with generally accepted accounting principles in
conformity with International Financial Reporting Standards (GAAP),
this press release contains Non-GAAP financial measures for gross
profit, operating expenses, operating loss, net loss and basic and
diluted earnings per share that exclude the effects of non-cash
expense of amortization of intangible assets and share-based
payments. Management believes that these non-GAAP financial
measures provide meaningful supplemental information regarding the
Company’s performance that enhances management's and investors'
ability to evaluate the Company's net income and earnings per share
and to compare them to historical net income and earnings per
share.
The presentation of this non-GAAP financial information is not
intended to be considered in isolation or as a substitute for the
financial information prepared and presented in accordance with
GAAP. Management uses both GAAP and non-GAAP measures when
operating and evaluating the Company’s business internally and
therefore decided to make these non-GAAP adjustments available to
investors.
About Mazor
Mazor Robotics (TASE: MZOR; NASDAQGM: MZOR) believes in healing
through innovation by developing and introducing revolutionary
robotic-based technology and products aimed at redefining the gold
standard of quality care. Mazor Robotics Renaissance® Guidance
System enables surgeons to conduct spine and brain procedures in a
more accurate and secure manner. For more information, please visit
www.MazorRobotics.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
and other securities laws. Any statements in this release about
future expectations, plans or prospects for the Company, including
without limitation, statements regarding the Company’s
opportunities for growth, that the Company anticipates launching
more PRO solutions throughout 2016, that the Company expects to
sell more Renaissance systems in the second half of 2015 when
compared to the first half of 2015, and other statements containing
the words “believes,” “anticipates,” “plans,” “expects,” “will” and
similar expressions are forward-looking statements. These
statements are only predictions based on Mazor's current
expectations and projections about future events. There are
important factors that could cause Mazor's actual results, level of
activity, performance or achievements to differ materially from the
results, level of activity, performance or achievements expressed
or implied by the forward-looking statements. Those factors
include, but are not limited to, the impact of general economic
conditions, competitive products, product demand and market
acceptance risks, reliance on key strategic alliances, fluctuations
in operating results, and other factors indicated in Mazor's
filings with the Securities and Exchange Commission (SEC) including
those discussed under the heading "Risk Factors" in Mazor’s annual
report on Form 20-F filed with the SEC on April 29, 2015 and in
subsequent filings with the SEC. For more details, refer to Mazor's
SEC filings. Mazor undertakes no obligation to update
forward-looking statements to reflect subsequent occurring events
or circumstances, or to changes in our expectations, except as may
be required by law.
Mazor Robotics Ltd. CONSOLIDATED STATEMENT OF
PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (U.S. Dollars
in thousands, except per share data) (Unaudited)
Nine month period Three month
period ended September 30, ended September 30,
2015 2014 2015
2014 Revenue
$
17,278 $ 15,463
$
4,965 $ 6,091 Cost of revenue
$
3,887 $ 3,153
$
1,195 $ 1,180
Gross profit
$ 13,391 $ 12,310
$ 3,770
$ 4,911
Operating costs and expenses:
Research and development
$
4,739 $ 4,526
$
1,579 $ 1,564 Selling and marketing
$
17,832 $ 15,828
$
6,213 $ 5,519 General and administrative
$
3,233 $ 3,181
$
1,103 $ 1,331
Total operating costs and
expenses $ 25,804 $ 23,535
$ 8,895
$ 8,414
Loss from operations $ (12,413
) $ (11,225 )
$ (5,125 ) $
(3,503
)
Finance income (expense), net
$
92 $ (225 )
$
(28 ) $ (286 )
Loss before taxes on
income $ (12,321 ) $ (11,450 )
$
(5,153 ) $ (3,789 ) Taxes on income
$
154 $ 157
$
64 $ 84
Net loss $ (12,475 ) $ (11,607 )
$ (5,217 ) $ (3,873 )
Net loss per
share – Basic and diluted attributable to ordinary shareholders
$ (0.30 ) $ (0.28 )
$ (0.12
) $ (0.09 ) Weighted average common shares
outstanding – Basic and diluted
42,262
41,713
42,326 42,059
Mazor Robotics Ltd. CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION AS OF (U.S. Dollars in thousands)
September 30, December
31, 2015 2014 (Unaudited) (Audited)
Current Assets Cash and cash equivalents
$
22,283 $ 22,255 Short-term investment
$
17,011 $ 24,507 Trade receivables
$
1,713 $ 2,797 Other current assets
$
1,085 $ 1,110 Inventory
$ 2,631
$ 3,050
Total Current Assets $ 44,723
$ 53,719
Non-Current Assets Prepaid lease fee
$ 77 $ 79 Deferred tax assets
$
9 $ 158 Long-term investments
$ 5,710
$ 5,473 Property and equipment, net
$ 1,295
$ 1,257
Total Non-Current Assets $
7,091 $ 6,967
Total assets $
51,814 $ 60,686
Current liabilities
Trade payables
$ 1,667 $ 1,689 Other current
liabilities
$ 5,446 $ 4,452
Total current
liabilities $ 7,113 $ 6,141
Non-Current Liabilities Employee benefits
$
290 $ 278
Total Non-Current liabilities
$ 290 $ 278
Total liabilities $
7,403 $ 6,419
Equity Share capital
$ 110 $ 110 Share premium
$
135,782 $ 135,182 Amounts allocated to share options
$ 77 $ 77 Capital reserve for share-based
payment transactions
$ 6,605 $ 4,586 Foreign
currency translation reserve
$ 2,119 $ 2,119
Accumulated loss
$ (100,282 ) $ (87,807
)
Total equity $ 44,411 $ 54,267
Total liabilities and equity $ 51,814 $
60,686
Mazor Robotics Ltd. RECONCILIATIONS OF GAAP
TO NON-GAAP FINANCIAL MEASURES (U.S. Dollars in thousands,
except per share data) (Unaudited)
Nine month period Three month period ended
September 30, ended September 30, 2015
2014 2015 2014 GAAP
gross profit
$
13,391 $ 12,310
$ 3,770
$
4,911 Amortization of intangible assets
$
- $ 93
$ - $ - Share-based payments
$
91 $ 36
$ 39 $ 24
Non-GAAP gross profit
$
13,482 $ 12,439 $ 3,809 $
4,935 GAAP gross profit as percentage of revenues
77.5 % 79.6 %
75.9 %
80.6 %
Non-GAAP gross profit as percentage of
revenues 78.0 % 80.4 % 76.7
% 81.0 % GAAP operating expenses
$
25,804 $ 23,535
$ 8,895 $ 8,414 Share-based
payments: Research and development
$
344 $ 185
$ 148 $ 104 Selling and marketing
$
1,119 $ 783
$ 567 $ 366 General and
administrative
$
705 $ 421
$ 227 $ 203
Non-GAAP operating expenses
$
23,636 $ 22,146 $ 7,953 $
7,741 GAAP operating loss
$
(12,413 ) $ (11,225 )
$ (5,125 )
$ (3,503 )
Non-GAAP operating loss
$
(10,154 ) $ (9,707 ) $
(4,144 ) $ (2,806 )
GAAP net loss
$
(12,475 ) $ (11,607 )
$ (5,217 )
$ (3,873 ) Share-based payments
$
2,259 $ 1,425
$ 981 $ 697 Amortization of
intangible assets
$
- $ 93
$ - $ -
Non-GAAP net loss
$
(10,216 ) $ (10,089 ) $
(4,236 ) $ (3,176 )
GAAP basic and diluted loss per share
$
(0.30 ) $ (0.28 )
$ (0.12 ) $
(0.09 )
Non-GAAP basic and diluted loss per share
$
(0.24 ) $ (0.24 ) $
(0.10 ) $ (0.08 )
Mazor Robotics Ltd. CONSOLIDATED CASH FLOW STATEMENTS
(U.S. Dollars in thousands) (Unaudited)
Nine months ended Three months ended
September 30, September 30, 2015
2014 2015 2014 Cash flows
from operating activities: Loss for the period
$
(12,475 ) $ (11,607 )
$ (5,217 )
$ (3,873 )
Adjustments: Depreciation and amortization
$ 398 $ 416
$ 148 $ 144 Finance
(income) expense, net
$ (237 ) $ 63
$ (99 ) $ 97 Share-based payment
$ 2,259 $ 1,425
$ 981 $
697 Taxes on income
$ 154 $ 157
$
64 $ 84
$ 2,574 $ 2,061
$
1,094 $ 1,022 Change in inventory
$
419 $ (876 )
$ 247 $ (108 )
Change in trade and other accounts receivable
$ 1,109
$ (3,100 )
$ 1,695 $ (1,780 ) Change in
prepaid lease fees
$ 2 $ (4 )
$
5 $ 1 Change in trade and other accounts payable
$ 1,153 $ 1,054
$ (420 )
$ 757 Change in employee benefits
$ 12
$ 19
$ (6 ) $ (19 )
$
2,695 $ (2,907 )
$ 1,521 $
(1,149 ) Interest received
$ 49 $ 61
$
14 $ 20 Income tax paid
$ (84 ) $ (28 )
$ 24 $ (14 )
$ (35 ) $ 33
$ 38 $ 6
Net cash used in operating activities
$ (7,241 ) $ (12,420 )
$ (2,564
) $ (3,994 )
Cash flows from investing
activities: Proceeds from short-term investments and deposits,
net
$ 7,259 $ 14,825
$ 2,246 $ 1,499
Purchase of property and equipment
$ (436 ) $
(407 )
$ (248 ) $ (166 )
Net cash provided
by investing activities $ 6,823 $ 14,418
$
1,998 $ 1,333
Cash flows from financing
activities: Issuance Expenses
$ - $ (294 )
$ - $ - Proceeds from exercise of share options by
employees
$ 360 $ 2,940
$ 53 $ 52
Repayment of loans to the Chief Scientist
$ - $ (324
)
$ - $ -
Net cash provided by financing
activities $ 360 $ 2,322
$
53 $ 52
Net increase (decrease) in cash and
cash equivalents $ (58 ) $ 4,320
$
(513 ) $ (2,609 )
Cash and cash equivalents at the beginning
of the period
$ 22,255 $ 19,803
$ 22,678 $ 26,734
Effect of exchange rate differences on
balances of cash and cash equivalents
$ 86 $ (109 )
$ 118 $ (111 )
Cash and cash equivalents at the end of the period
$
22,283 $ 24,104
$ 22,283 $ 24,104
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151105005533/en/
U.S. Contacts: EVC GroupInvestorsMichael Polyviou,
212-850-6020mpolyviou@evcgroup.comDoug Sherk,
646-445-4800dsherk@evcgroup.comorMediaDavid Schemelia,
646-201-5431dave@evcgroup.com
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